December 8, 2025 | Real Estate Market Update for Northville, Novi, South Lyon, Plymouth and Metro Detroit | Insights by Jeff Duneske, Northville Real Estate Agent

by Jeff Duneske

What the Latest National Data Means for Our Local Market

National housing data this week shows a market that is becoming more active and more balanced, with mortgage purchase applications near a three-year high and inventory still climbing compared to last year.

For buyers and sellers in Northville, Novi, South Lyon, Plymouth and the greater Metro Detroit area, this combination of stronger demand, more homes for sale, and slightly improved affordability is creating a window of opportunity as we close out twenty twenty five and head into twenty twenty six.

Mortgage Demand Is Climbing Again

According to the latest HousingWire report, mortgage purchase applications are now close to a three year high. For the past eighteen weeks, mortgage rates have held below about six point six four percent, and during that stretch applications have shown consistent year over year growth.

A few key points behind the headline:

Eighteen straight weeks of double-digit year-over-year growth in purchase applications
Forty-four consecutive weeks of positive year-over-year application data overall
Total pending home sales are now at a multi-year high, with roughly three hundred twenty four thousand contracts written in the most recent week compared to about three hundred fifteen thousand at this time last year.

Local takeaway for Metro Detroit buyers

More people across the country are moving off the sidelines and locking in homes at today’s rates instead of waiting for something dramatically lower. In our local communities of Northville, Novi, South Lyon and Plymouth, that shows up as more serious buyers touring, writing offers and competing for well prepared homes.

If you have been waiting for “the perfect moment,” understand that many of your future competitors are getting a head start right now by shopping before the traditional spring rush.

Inventory Is Up Compared to Last Year, Even As It Follows Normal Seasonal Patterns

Housing inventory is still higher than it was a year ago, even though the growth rate has slowed. Nationally, active listings are up about fifteen point two six percent compared to the same week in twenty twenty four, after peaking earlier this year at more than thirty percent year over year growth.

Over the past three years the same week of data shows:

Twenty twenty three: about five hundred forty six thousand homes for sale
Twenty twenty four: about six hundred ninety thousand homes for sale
Twenty twenty five: about seven hundred ninety five thousand homes for sale

What this means for sellers in our area

You still have less competition than we saw in the pre pandemic years, but buyers finally have more than one or two options to consider. That means:

Pricing slightly ahead of the market is risky
Strategic pricing, strong presentation, and accurate positioning by a top real estate agent in Northville, Novi or South Lyon matter more than ever
Clean, move in ready homes with thoughtful marketing continue to attract the strongest activity and best terms

What this means for buyers

More inventory year over year gives you:

A better chance of finding the right fit without feeling rushed
More leverage to negotiate repairs, concessions or closing costs in some price points
The ability to be selective about neighborhoods, school districts and lifestyle fit in communities like Northville, Novi, South Lyon, Plymouth and across Metro Detroit

Price Reductions Are Up Slightly, Creating More Room for Negotiation

Another important data point this week is the rate of price reductions. Nationally, about forty point two percent of active listings have taken at least one price cut, compared with about thirty eight percent at this time in both twenty twenty three and twenty twenty four.

This tells us two things:

Some sellers are still testing the market with overly optimistic list prices.
Buyers who stay engaged and watch closely are finding opportunities when those homes adjust to reality.

In our local Northville, Novi, South Lyon and Plymouth markets, we are seeing something similar. The best prepared listings still move quickly and sell at strong prices. The homes that are dated, poorly presented, or priced without a clear pricing strategy are the ones most likely to reduce and sit.

If you are a seller, the goal is simple: avoid becoming a “price reduction story.” Careful preparation, staging, and an honest pricing conversation up front will help you maximize your bottom line without weeks of frustration.

Mortgage Rates, Spreads and the Role of the Federal Reserve

The national forecast for twenty twenty five places mortgage rates in a broad range between about five point seven five and seven point two five percent. The ten year Treasury yield is expected to trade roughly between three point eight and four point seven percent, and the spread between the ten year and mortgage rates is projected to improve slightly from recent elevated levels.

At the same time, economists expect the Federal Reserve to cut the short term policy rate again this week, bringing the federal funds target range down to roughly three point five to three point seven five percent.

Here is what that means in practice:

A rate cut from the Federal Reserve does not automatically drop thirty year mortgage rates the next day.
Much of this move is already “priced in” by financial markets and reflected in today’s mortgage quotes.
The bigger story is stability. If inflation continues to cool and the spread between mortgages and the ten year Treasury gradually normalizes, there is room for mortgage rates to drift closer to the low six percent range in twenty twenty six.

Realtor.com’s forecast suggests that even if home prices continue to rise modestly, the monthly cost of owning a home could actually decline in 2026 for the first time since 2020, thanks to a combination of slightly lower borrowing costs and rising incomes.

For Metro Detroit buyers, that means today’s rates are likely very close to the “new normal.” Waiting around for another round of three percent mortgages is not a strategy; it is a delay that can cost you future equity and years in a home that better fits your life.

“Nobody’s Market” Or Your Moment To Act

Nationally, top agents describe this environment as “nobody’s market” because it does not clearly favor buyers or sellers.

That description is surprisingly accurate:

Buyers are wrestling with affordability, but they also have more choice, more price reductions, and the ability to negotiate.
Sellers face more competition than they did at the peak of the frenzy, but they still benefit from solid demand, a deep pool of renters who want to own, and a limited number of truly move in ready homes.

Here in Northville, Novi, South Lyon and Plymouth, I see it as a smart person’s market:

Buyers who are prepared, pre approved, and partnered with a knowledgeable local advisor are finding quality homes without the chaos of multiple double digit offers we experienced earlier in the decade.
Sellers who invest in preparation, pricing and presentation are still achieving strong results, especially in desirable neighborhoods, golf course communities, and low turnover areas.

If you are navigating a major life transition such as retirement, right sizing, a divorce, or helping aging parents, this balanced environment can actually work in your favor. As a Metro Detroit Senior Real Estate Specialist and Metro Detroit Divorce Real Estate Specialist, I help clients look at both sides of the equation so the purchase and the sale work together.

Cash Buyers Remain Active, Especially In Relocation Markets

Zoodealio’s list of the top ten markets for cash offers this week is dominated by destinations like Denver, Atlanta, Las Vegas, Houston, Orlando, Dallas, and several Florida metros.

While Metro Detroit is not on that particular list, it is directly affected:

Many of our buyers are relocating from higher priced states where they have built significant equity.
Those buyers often arrive with strong down payments or full cash offers that compete with or exceed local norms.
As a top real estate agent in Northville, Novi and South Lyon, I routinely help clients structure offers that stay competitive against cash by using flexible terms, appraisal strategies and proven negotiation approaches.

Understanding who your competition is, and how they are structuring offers, is a big part of winning in this market.

How To Move Forward In Today’s Market

Whether you are buying or selling in Northville, Novi, South Lyon, Plymouth or anywhere across Metro Detroit, the big message from this week’s data is clear:

Demand is strengthening, not weakening.
Inventory is higher than last year, creating more options.
Price reductions are a little more common, opening the door to negotiation.
Mortgage rates are likely to hover near current levels, even as the Federal Reserve trims short term rates.

If you want clarity on how these trends affect your specific home, neighborhood, or price point, I am here to walk you through the numbers, not just the headlines. Together we can create a plan that matches your timing, your equity, and your next chapter.

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Jeff Duneske, Northville Realtor® – Keller Williams Advantage
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